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Abstract
We estimated the economic benefits resulting from controlling soybean aphid infestation by
using a multi-regional competitive dynamic equilibrium model. Results indicate that the reduction
of soybean production resulting from a soybean aphid infestation is largely absorbed
by reducing soybean exports, due to the higher price elasticity of export demand compared to
domestic demand. Producer benefits resulting from controlling soybean aphids would increase
by between $949 million and $1.623 billion in ten years under various scenarios. Results also
suggest that it is economically more efficient to control soybean aphids when the rate of intrinsic
growth is relatively lower, the supply price elasticity of soybean acreage is relatively more
elastic, and insecticide treatment costs per acre are lower. However, if the discovery of the
gene Rag-1 (TF04048) leads to new cultivars that withstand the soybean aphid, our estimates
will overestimate the actual damages. Even so, our analysis demonstrates that it is critical to
control soybean aphids early in their infestation cycle to avoid a rapid increase in damages.